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4/16/2012 4:41PM

Sowing Seeds of the Next Major Crisis

The rescue of the global financial system from 2007 to 2009 and during the recent European turmoil has turned into a messy relationship riddled with distrust and misunderstandings, as Francesco Guerrera explains on The News Hub. Photo: Reuters.

This transcript has been automatically generated and may not be 100% accurate.

... the the ... the situation has on us and so the situation on the stock was sold the Sobel lot of ... fun explain what you mean by fads and what he's talking bout still I think I think what's happening here is that the on site directly to the simplest ways that that I should do that themselves this being the nineteenth the diner ... when by school money into the financial sector when things are really bad then that ... then that the bus stop it and now there is is really difficult dynamics where the private sector or ... so the banks and the Nexus one than adults of the of the sector and at the same time he need all the help they can get into so you know come up with a gain of one tree policy ... of ... money cheap money right the CDS providing the European banks ... and so we are ... in a situation with is the prolonged intervention by the far East review fundamental distortions ... in the financial markets that are going on in my view ... as to create the next crisis ... to basically feminine things the government to regulate doing in order to fix it ... accept that passed my track at the same time the encouraging thing kind of behavior that got us into this place yet so don't agree it's not like it desirable effect but the longer they stayed the more people see these crazy behavior so for example give you a very ... real example they have to keep interest rates low we know that ... that the power that is that they're pushing investing was risky and risky investments in the past ... five days amid the journey written about an explosion in junk bonds ... the ... re emergence of things right yet want securitize French economic news ... out of the direct lending market PPP market ... and sectional to the old stuff that ... happens because investment you can get the deal and looking for a return to the cannot get elsewhere in this business because the government is just to check in to do the right Franklin let bad company's final ... which was one of the Proms in the first place is that ... our wickedness we comedy take time fell because who move know but they went over to knit the country club whatever it was ... calm but other not to the other reasons given by idea now at my job to look a little bit but ... it's a simple and Disney to let in capitalism to let companies fail when they thought that one won the that that's true except that this does with the exception with financial companies because ... yes he's going to pull the plug on the company's twenty fell dead at ... the par with the banks in the sectors or when you pull the plug and then there's the poles said the ripple effect this ... would give the banks of systemic and so ... the government yes it's true I get chicken will conclude Sloan to do that at the moment and so this thing in ... October The and my hottie and send it if they can in my campaign right now I'm not to sign a deal saying what I don't anticipate ... I think I think what they would be should we see no need to be realized when that that is a certain amount of money sloshing around says the babies ready to be put to people into play ... as you can see because indexing the fact that she can securitize bonds right and still ... yet to be careful when the price it is ready to pick up the back to me today is the ... real danger of missing you well ... why would he have a pic of the facts ... and a free if you go Mommy and Daddy that with a massive printing press aam ready to pony up at any point I mean ... it's like pulling off the potty before the price break the news many want him to get right on my right ... yet so this okay so that's why does the Opinion forces are not working because the government debt providing cheap money ... this marker can on the reason for doing it for my my the isthe the financial sector this distorts the function of the markets the house ... don't know how they think investors are now that there might be some ... of the explosion in Amman and I think the thing it's prosecutor mean all soon but his cross seek to know that that that that this year's irrational behavior is lead to ... the buildup of risk seen this this that we've seen you before ... each of these behaviors rationally the private enterprise and wants he'll die when the going get with this I would invest in the CDP deal ... the funny thing you'll do it don't go crazy amount of risk ... is now we know the Fed watches the New Saab everyday half or so you can talk to them now directly tell them what what they should do what should they cancel the soul and Martha and I accidentally style and you get ... me because I could decide that one ... secondly well I think it's can be very careful about what you wish will be very careful what you do with the financial sector because the some things you can onto wants to do that ... and I am glad that our investors keep the wind is going to keep the baby don't intend ... to make ... me happy at the city's if you had like eight expect to weaken as the Klintworth The arrived on